Question

DEMAND FORECASTING CASE STUDY You have been hired as a demand planning intern for the Maui Jim Inc. They want you to develop a forecast for their Longboard style of sunglasses. The goal is to determine how many pair they will produce to meet vendor demand ir first meeting, you were handed some data to work with and e about the company's upcoming promotional blitz to support Spring Break '19 in major vacation destinations. 9. During your am talked Month Forecast 3,500 4,000 February 2018 March 2018 April 2018 May 2018 June 2018 July 2018 August 2018 September 2018 October 2018 November 2018 December 2018 January 2019 Other useful information Demand 3,200 3,700 4,500 5,400 6,000 6,200 5,400 4,600 4,000 4,000 5,200 2,900 5,000 6,000 5,500 5,000 4,500 4,000 5,000 3,500 Monthly production capacity 3,500 units Typical forecasting error 300 units 2019 sales growth projection-8% over 2018 (from Marketing Department)

Answer 1

For 4 parts of Question 1 -

Below is the screenshot of formula applied to get the result -

Below is the desired result -

Below is the required answers -

Forecasting for February 2019 using three month moving average = 4033

Forecasting for February 2019 using three month weighted moving average = 3700

Forecasting for February 2019 using Exponential Smoothing = 3994

From screenshot, it is clear that MAD for exponential forecasting has the least value, hence same should be selected for the forecasting method among the three mentioned.